City Developments obtains S$500 million green loans for new property developments

City Developments signage on construction hoardingCity Developments signage on construction hoarding

City Developments said on Friday it obtained S$500 million in green loans, marking the first time green loans in Singapore will be used for new property developments.

DBS Bank, the adviser for the green loan, is providing a S$400 million green loan with a three-year term, while another green loan of S$100 million is provided by HSBC, which is the structuring adviser, it said in a filing to SGX on Friday.

“Green financing plays a pivotal role in channeling capital to build greener and more climate-friendly infrastructure,” Sherman Kwek, CDL group CEO, said in the statement.

“CDL’s inaugural green bond in 2017 and our new green loans have enabled us to tap on investors and banks that are supportive of our sustainability best practices,” Kwek said. “With the global shift to a low carbon economy, CDL will continue to explore sustainable financing to develop more green buildings that not only bring economic savings but also benefit occupants and the environment.”

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